affects investment incentives, market shares, and profits. We identify conditions for efficient investment in terms of the … parties' relative bargaining powers, market shares, and the sensitivity of consumer demand to investment. Compared to outcomes … suppliers that do not negotiate directly with each other is a key determinant of investment, productive efficiency, and channel …

This paper models investment/entry decisions in a competitive industry that is subject to a quantity control on an … permit or a production license). The paper shows that liberalizing the quantity control could reduce investment in the … industry under certain circumstances. Furthermore, the level of investment is quite different when licenses are tradable than …